New York Fed to pump $75b more into money markets

New York: For a third straight day, the Federal Reserve Bank of New York on Thursday will inject billions into US money markets to preserve the Federal Reserve’s control over short-term interest rates.

In a statement late Wednesday, the New York Fed said it will again conduct a repurchase agreement operation of up to $75 billion (Dh275 billion) to offer more liquidity to the system. It offered the same amount in repo operations Tuesday and Wednesday.

Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates.